employability in malaysia

8/13/2019 Employability in Malaysia

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GRADUATE EMPLOYABILITY IN ASIA

United NationsEducational, Scientific and

Cultural Organization

UNESCO Bangkok

Asia and Pacific Regional Bureau

for Education


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iGRADUATE EMPLOYABILITY IN ASIA

GRADUATE EMPLOYABILITY IN ASIA


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ii GRADUATE EMPLOYABILITY IN ASIA

Published by UNESCO BangkokAsia and Pacific Regional Bureau for EducationMom Luang Pin Malakul Centenary Building920 Sukhumvit Road, Prakanong, KlongtoeyBangkok 10110, Thailand

UNESCO 2012

All rights reserved

ISBN: 978-92-9223-395-2(Electronic Version)

The designations employed and the presentation of material throughout this publication do not imply the expression of anyopinion whatsoever on the part of UNESCO concerning the legal status of any country, territory, city or area or of its authorities,

or concerning the delimitation of its frontiers or boundaries.

The authors are responsible for the choice and the presentation of the facts contained in this book and for the opinions expressedtherein, which are not necessarily those of UNESCO and do not commit the Organization.

UNESCO Bangkok is committed to widely disseminating information and to this end welcomes enquiries for reprints, adaptations,republishing or translating this or other publications. Please contact [email protected] for further information.

Design/Layout: Sirisak ChaiyasookFront cover photo: UNESCO/S. Chaiyasook

APE/12/OS/011-E
mailto:[email protected]:[email protected]


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iiiGRADUATE EMPLOYABILITY IN ASIA

Contents

Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Employability of graduates in Asia:

an overview of case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Graduate employability in Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Employability of graduates in Malaysia. . . . . . . . . . . . . . . . . . . . . . . . 24

Employability of graduates in the Philippines . . . . . . . . . . . . . . . . . . . 38

IT graduates employability: Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . 59

Appendix 1: Enhancing graduate employability at the International

Islamic University Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87


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iv GRADUATE EMPLOYABILITY IN ASIA

AcronymsACS Alumni and Career ServicesADB Asia Development BankAEC ASEAN Economic Community

APEID Asia-Pacic Programme of Educational Innovation for DevelopmentASEAN Association of Southeast Asian NationBLES Bureau of Labor and Employment StatisticsBPO Business Process OutsourcingCCAC Co-curricular Activity CentreCEDF-IT Cebu Educational Foundation for ITCGPA Cumulative Grade Point AverageCHED Commission on Higher EducationCSO Civil Society OrganizationFMM Federation of Malaysian ManufacturersFSP Finishing School ProgrammeHEI Higher education institutionICT Information and Communication Technology

IIUM International Islamic University MalaysiaILO International Labour OrganizationIPPTN Institut Penyelidikan Pendidikan Tinggi NegaraIT Information TechnologyLFS Labour Force SurveyMEF Malaysian Employers FederationMNC Multi-national CorporationsMoHE Ministry of Higher EducationMTPDP Medium-Term Philippine Development PlanMUET Malaysian Universities English TestNCCAC Non-credit Co-curricular Activity CentreNGO Non-governmental Organization

NSCB National Statistical Coordination BoardNSO National Statistics OfficePBL Problem-based LearningPRC Professional Regulation CommissionPSDC Penang Skills Development CentrePWD People with a DisabilityRAP Rapid Assessment ProcessSME Small Medium EnterpriseSMI Small medium industryUI Universitas IndonesiaUiTM Universiti Teknologi MARAUNESCAP United Nations Economic and Social Commission for Asia and the Pacic

UNESCO United Nations Educational, Scientic and Cultural OrganizationUTM Universiti Teknologi MalaysiaUUM Universiti Utara Malaysia


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vGRADUATE EMPLOYABILITY IN ASIA

Preface

We live in a rapidly changing world with diverse demands and challenges. Governments are increasinglylooking to universities to produce human resources with the right kind of capacities, skills and knowledgeto meet 21st century needs. They also call on universities to facilitate the shift to knowledge-based

economy and high-technology through effective linkages between research and industry to ensure thattheir countries have a competitive edge in the global market.

Preparing young people to enter the labour market has therefore become a critical responsibility foruniversities. However, the relevance of their programmes and the employability of their graduates areposing an increasing challenge for the universities, particularly in view of two sets of statistics: enrolmentand youth unemployment rates. According to UNESCOs data, enrolment in tertiary education more thandoubled over the past two decades from 68 million in 1991 to 151 million in 2008. At the same time, thefinancial crisis that began in 2008 has resulted in increasing unemployment, as highlighted in ILOs GlobalEmployment Trends reports. The global unemployment rate was 6.2 percent in 2010 compared to 5.6percent in 2007. According to the 2012 report, young people continue to be the hardest hit by the jobcrisis with 74.8 million youth being unemployed in 2011, an increase of more than 4 million since 2007.

With many economies being reported as not generating sufficient employment opportunities to absorbgrowth in the working-age population, a generation of young productive workers will face an uncertainfuture unless something is done to reverse this trend. To increase the graduates chances of obtainingdecent jobs that match their education and training, universities need to equip their students with thenecessary competencies to enter the labour market and to enhance their capacities to meet specificworkplace demands.

UNESCO Bangkok with the support of Japanese Funds-in-Trust and UNESCO Jakarta coordinated a studyon the employability of university graduates in selected countries in Asia. While there is no one-size-fits-all formula, findings from the study can help governments and universities in developing policiesand approaches to make their graduates more employable and responsive to labour market demands.Emerging economies in Asia had weathered the 2008 financial crisis fairly well. However, as the globaleconomy is expected to continue its slowdown in the short-term, governments in this region recognizethe challenges posed by an ever increasing competitive environment. I hope this report will contributeto their efforts in meeting these challenges.

On behalf of UNESCO Bangkok and UNESCO Jakarta, I would like to thank the authors for their effortsin preparing the case studies in their respective countries. I would also like to acknowledge thecontributions of Mr. N.V. Varghese from the UNESCO International Institute for Educational Planning (IIEP)and other participants of the Regional Seminar on Diversification of Post-secondary Education and theEmployability of University Graduates held in March 2010 who commented on the preliminary findingsof the research study.

Gwang-Jo KimDirector

UNESCO Bangkok


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Employability of graduates in Asia:an overview of case studies

Lay Cheng Tan and Erika French-Arnold

The global economy favours knowledge and technology. Higher education is increasingly being viewedas central to national strategies for securing shares in the global market and universities as the repositoriesof valuable human capital to support national development.

The contribution of universities to economic development can be seen in three areas: (i) producing andaccumulating human capital; (ii) generating, disseminating, and applying knowledge; and (iii) innovatingand inventing new information and technology. The accelerating shift to high-technology industriesand an information technology economy requires sustained human resource development and training.Therefore, an appropriate higher education system is critical for preparing a competent workforce.

Reecting the priority given to develop a knowledge-based economy, tertiary education enrolment hadincreased vefold from 28.6 million in 1970 to 152.2 million in 2007. 1Unfortunately, employment rateshad not kept pace with this trend. The global unemployment rate increased from 5.6 percent in 2007to 6.2 percent in 2010.2This has created a highly competitive environment for young people aged 15-24 years, as can be seen from high youth unemployment rates: 11.8 percent in 2007, 12.8 percent in2009, 12.6 percent in 2010 and 12.7 percent in 2011.3These statistics are worrisome because the youthrepresent the productive labour force of the countries. If not gainfully engaged for extended periods oftime, many governments will have to deal with a host of issues and challenges facing a lost generation.

The number of unemployed graduates is partly caused by imbalances in the economy. The nancialcrisis and economic downturns in recent years are certainly reasons for the reduction in the number ofjobs, but supply-side factors also contributed to the high numbers of unemployed graduates. The kindof skills required for graduates to enter the labour market need to be clearly understood so that higher

education institutions (HEIs) can foster these skills in their students. Relevance of their programmes playsan important part in helping their graduates nd employment.

Supported by the Japanese Funds-in-Trust, UNESCO initiated a study to examine the employability ofuniversity graduates in selected countries in Asia and the Pacic. The study aimed to analyze the factorsthat have an impact on graduate employability, and to identify policies and strategies that have beenput in place by universities to prepare and train their graduates to meet the demands of the workplace.The study also attempted to highlight the plight of graduates with degrees in information andcommunication technologies (ICT ). Given the prevalence of technology in all aspects of our lives and therapid development in the eld, the capacity of universities to adapt and update their programmes andcurriculum accordingly is of particular concern.

This report features three case studies on graduate employability from Indonesia, Malaysia and thePhilippines, and a fourth on the employability of ICT graduates in Malaysia. The studies were conductedby researchers based in the countries following some guiding principles which could be adjusted tomeet country-specic conditions and priorities:

The studies were to focus on the 1stdegree-undergraduate level and targeting new graduates (0-12

months after graduation).

The emphasis was on the employability of graduates, rather than graduate unemployment.

Previous graduate employment research and studies were referred to as far as possible to build on their

ndings and experiences.

1 UNESCO-UIS. 2009. Global Education Digest 2009. Comparing Education Statistics Across the World. UIS, Montreal.2 ILO. 2010. Global Employment Trends for Youth. August 2010. ILO, Geneva.3 ILO. 2011. Global Employment Trends, 2011. The Challenge of a Jobs Recovery. ILO, Geneva; ILO. 2012. Global Employment Trends,

2012. Preventing a Deeper Jobs Crisis. ILO, Geneva.


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Findings

Concept of employability

There is general consensus that employability refers to a wide range of attributes and competencies thatenable the job seekers to gain and maintain employment such as, but not limited to, the following:

Communication skills

Logical, analytical and problem solving skills

Personality, condence, and integrity

Flexibility and adaptability

Innovation and creativity

Team spirit

Attempts to use a broader framework for employability take into consideration the roles of both individualcharacteristics and labour market conditions. The model developed by McQuaid and Lindsay (2005) 4

contains three interrelated components that inuence employability:

Individual factors that include attributes (e.g., basic social skills), competencies (e.g., motivation,

condence), transferable skills (e.g., literacy, numeracy, problem-solving, communication, adaptability,

teamworking skills), qualications and educational attainment.

Personal circumstances that relates to the individuals social and household circumstances (e.g., family

and caring responsibilities, access to resources).

External factors that cover labour demand conditions (e.g., macroeconomic factors, vacancy

characteristics, recruitment factors) and enabling support factors (e.g., accessibility of public services

and job-matching technologies).

Seen through this lens, employability is thus an outcome of multiple factors, and dialogues on

employability and employment need to include more stakeholders in addition to HEIs and students.

Graduate unemployment rates and job preferences

Data from the Indonesian Ministry of Manpower and Transmigration show that from 2007-2009 thenumber of people seeking jobs exceeded the number of job vacancies for HEI graduates. With a highpercentage of graduates looking for jobs, e.g., 26.7 percent in 2009, Malaysia also faces high graduateunemployment rates. The Philippines has no recent data on unemployment of new graduates per se,but the number of unemployed college graduates in general has been increasing according to data from2007 to 2009. According to the Malaysian study, graduates of technical studies and ICT were more likelyto be employed, but even they found it hard to nd jobs as reported in the ICT case study from Malaysia,

with 39.3 percent being unemployed at the time of the survey in 2008.The oversupply of graduates in some elds was an issue. Students enrolled in over-subscribedprogrammes, leading to a glut of graduates unable to nd jobs in their areas of specialization, suchas nursing and information technology in the Philippines. The lack of work experience, particularly inthe cutting-edge industries of the IT sector, was another factor tending to limit graduate employmentprospects. Faced with these difficulties, many ended up underemployed or employed in areas for whichthey were not trained. Graduates in Indonesia indicated a preference for working in the private sector.In fact, most of the IT graduates surveyed in Malaysia (79.6 percent) were working in the private sector,while 20.4 percent were with the government or with government-linked companies.

4 McQuaid, R.W. and Lindsay, C. 2005. The concept of employability. Urban Studies, Vol. 42, No. 2, pp. 197-219.


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Different perspectives

The results demonstrated differing perspectives among the graduates, universities and employers.Graduates generally believed their education and skills were sufficient. The universities considered theirstudents to be well prepared for the transition to the workplace. Unfortunately, the employers concludedthat new graduates lacked vital skills for employment, citing unrealistic expectations and demands forhigher salaries as examples.

Such incongruent perspectives must be addressed for effective solutions to enhance the employabilityof graduates. No graduates, HEIs or employers will argue against having professionals who areknowledgeable and skilled, and at the same time possess desirable attributes. Several suggestions havebeen made to reduce the gaps.

Bridging the gaps

Academic qualications are essential, but the aptitudes and attitudes of job seekers are equally, if notmore, important to employers. A high grade point average alone does not guarantee employment. It is

therefore crucial for graduates to cultivate qualities most sought after by their potential employers. Theseare what the researchers classied as ++ factors: they include motivation, an ability to think outsidethe box, problem are solving and communication skills, and an ability to work both as part of a teamand independently. It is also vital that graduates liable to work in many different jobs and industriesthroughout their entire career seek to constantly improve and update their skill, and willing to learn newtechnologies. Any sign that they possess some of these qualities might persuade employers to offerthem jobs. Young people therefore have a responsibility to prepare themselves for a changing worldby improving their knowledge and skills to meet the demands of employers and the realities of theworkplace.

In economies with limited job opportunities, entrepreneurship is seen as a viable option for new graduatesto chart their own future by setting up an own businesses. To overcome barriers such as the shortageof start-up funds, insufficient knowledge of business practices and lack of motivation, it is necessary to

design courses for entrepreneurship, organize extracurricular activities, and provide government supportand funding as further encouragement. This paradigm shift is seen in both Indonesia and Malaysia. TheIndonesian government has introduced an entrepreneurship skills programme and provides seed capitalfor new graduates to start up their own businesses. The Malaysian government has initiated a combinationof conventional discipline-related courses and entrepreneurship courses to include subjects such assmall business management, competencies such as English language, team work and analytical skills toexpose students to skills to help them start their own business, create jobs for themselves and others.ICT graduates will benet substantially from such training in entrepreneurship in view of the potential forinnovative start-ups in the industry.

There is strong support for industries to play a bigger role in improving the employability of graduates,both within or outside the formal curriculum structure. Linkages between universities and industriesoffering work-based projects and internships can also help universities to acquire valuable informationto update their curricula, and students to gain practical work experience. Employers need to facilitate on-the-job training, particularly for specic skills or new applications and technologies.

ConclusionsThe concept of employability gives rise to questions such as: Should employability be the primary basisthat shapes the direction of universities? Is a universitys purpose to be dened solely by the expectationsof employers? It is contentious to argue that the quality of higher education should be measured solelyin terms of the employment rate of graduates, and that is not the intention of this research study. There isno doubt that universities are expected to nurture their students to become responsible, productive and

innovative citizens, and by doing so, they will help to develop the desirable ++ factors in their graduates.


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The task of producing such graduates does not lie only with the HEIs but is part and parcel of the entireeducation system, including the primary, secondary and post-secondary education stages. Educationinstitutions at all levels share the same responsibility in developing current and future generationsof young people, as do governments, employers, non-governmental organizations and civil societyorganizations. With more at stake, students themselves have to take personal responsibility to optimizethe opportunities they have in institutes of higher learning and ensure that they leave their institutes as

highly sought after graduates.

With the imminent establishment of Association of Southeast Asian Nation (ASEAN) Economic Community(AEC) in 2015, there will be greater integration, and also competition among ASEAN countries. Theunemployment situation in Indonesia, Malaysia and the Philippines may ease when their job marketsexpand across the borders, if their graduates can compete successfully at the regional level. The stakesare high. UNESCO hopes that this report to highlight the importance of graduate employability and thata concerted effort is needed by all to ensure that highlights graduates are adequately prepared andtrained to meet the challenges.


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Graduate employability in IndonesiaWidijanto S. Nugroho, Nizam, Rahmat M. Samik-Ibrahim and Putu W. Handayani5

IntroductionModern economy needs highly trained and skilled human resource, and higher education institutions(HEIs) are required to produce qualied graduates to meet the needs of national development andemployers. The industry denes the characteristics and skill requirements of its workforce which mayor may not be matched by the graduates being produced by HEIs. In the higher education context,employability has a variety of meanings, from the employment rate of graduates to the characteristicsof the graduate (Harvey, 2003). In the Indonesian context, employability is usually associated with howquickly a graduate nds employment. As a result, the waiting period for seeking employment dominatesthe indicator of whether an institution is able to produce qualied graduates for the job market (Syaqand Fikawati, 2008; Universitas Indonesia, 2003).

However, given the broad understanding of employability, it is important to recognize that the quality ofa university graduate is not just a reection of the quality of the curriculum and its supporting academicenvironment. It also reects the demands of the industry as well as the competence of the regulatingbody (i.e. related government institutions) in shaping the characteristics of higher education graduates. Itmight be overly simplistic to say that universities are encouraged, if not pressured, to produce employablegraduates. The higher education sector in Indonesia needs to recognize and understand the contextof employability for their graduates to ensure that their students can live up to the expectations fromgovernments and employers.

Finding the answers to the question do our graduates have the right characteristics or attributes thatmake them employable? will help to comprehend what constitutes graduate employability. Much of thediscussions on graduate employability tend to link it with the performance of HEIs. Harvey (2003) indicatesthat equating employability with skills was part of the agenda of the 1990s. Similarly expressed in theDearing Committee Report (Dearing, 1997), employability is not just about getting the preferred skills.A more important priority is the graduates work experience, an emphasis that must be fully understoodby HEIs. Harvey goes further to suggest a model of employability where an institution, notably the HEI,provides a range of implicit and explicit opportunities for its graduates. These include job obtainingknowledge and abilities, labour market information, interview techniques and curriculum vitae writing.The institution may also develop a range of attributes such as (a) higher-level of analysis, critique andsynthesis skills; (b) interactive competencies such as team approach and communication skills; and (c)personal characteristics such as self-organization, time management, risk taking and problem solving.Another aspect that also contributes to the characteristics of the employability model is the developmentof the students interest in continuous learning beyond formal higher education, and the development ofthe students ability to reect on their learning and experience.

A graduate recruiter in the United Kingdom believes that todays world of work is increasingly expectingmulti-skilled and multi-tasking employees (Fearn, 2009). Workers will need to apply new skills that willrequire them to learn and re-learn while on the job. The DGHE-MONE (2009) report highlighted thedominance of workers with elementary level education among Indonesias productive labour force.In 2006, around 55 percent of the labour force obtained elementary education or less, while only 5.4percent obtained tertiary level education as shown in Table 1.

5 University of Indonesia and Directorate General of Higher Education, Indonesia. The authors acknowledge the support fromUNESCO Bangkok and Directorate General of Higher Education, Indonesia who have supported the research.


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Figure 1:Highly skilled foreign workers in Indonesia by occupation

7%

1%

20%

8%

17%

8%

39%

Advisor/counsultant (7%)

Technician (20%)

Professional (39%)

Supervisor (8%)

Manager (17%)

Director (8%)

Commissioner (1%)

Source:National Statistic Bureau, February 2008

A research on graduate employability in the Philippines posed several questions to identify parametersfor describing employment and employability aspects of university graduates (De Guzman and DeCastro, 2008):

Which programmes are most sought by employers?

Which programmes have the best potential for the highest initial earnings?

Which types of graduates are most employable?

How long did it take graduates to nd employment after college?

What academic experiences/competencies from college did the graduates nd most useful?

Which factors best determine employability from the personal and academic backgrounds of graduates?

Through systematic sampling, the results showed that graduates of a Philippines comprehensiveuniversity did not have to wait long to nd regular employment. Furthermore, these graduates wereemployed through walk-in applications and recommendations. The research found that graduateemployability was not attributed to the academic honours of graduates. Rather, it was due to the assetsof knowledge, skills and attitudes, and the way these were deployed in the workplace. The researchndings provided structural and procedural implications for universities in the Philippines. In view of thendings, a more functional framework for employability needs to be developed, allowing better linksbetween the degrees offered and the diversity of employment.

In the Indonesian context, the term graduate employability has to be examined from the viewpointsof industry, HEIs and related government bodies. Several studies have contributed to the knowledgeon graduate employability (Syaq and Fikawati, 2008; Universitas Indonesia, 2003; DGHE-MONE, 2009).This paper presents ndings from a research study undertaken with the support of UNESCO and theJapanese Funds-in-Trust to further explore and distinguish an employability model for Indonesian highereducation graduates, focusing on graduate employability from the perspectives of the graduate, theeducational institution, industry and various government bodies.

Research approachA literature review was rst conducted to collect information on graduates success in obtaining a jobafter nishing their studies. This was followed by several surveys targeting the three main stakeholders students, HEIs and employers. Fresh graduates, job seekers and employed graduates were surveyedto develop a prole of their employment characteristics. HEIs were interviewed and their curriculaexamined to nd out how they instil employability characteristics in their graduates. A random sampleof employers reecting different kinds of job opportunities were surveyed to understand the industrysrequirements when employing graduates.

Survey instruments were distributed at a two-day job exposition at Universitas Indonesia in October2009, online through alumni mailing lists, via a web survey and during a one-day seminar involving


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employers held by the Computer Science Center of Universitas Indonesia. The following is the summaryof the responses:

524 survey forms were distributed; 72 of the forms returned had errors leaving 452 for analysis;

73 responses were obtained through email and the web survey; and

29 respondents were employers one form was rejected because it was incomplete.

Results of the study

Profile of the labour market

Indonesias economy is shifting from being agriculture-based towards industry and service-based. Datafrom the National Statistic Bureau indicated that in 1971 the agriculture sector contributed 44.8 percentto the nations GDP, in 1990 it went down to 21.5 percent, and in 2006 it only contributed 12.9 percent.However, the shift in labour force was slower to take place. In 2001 the agriculture sector absorbed 68.8

percent of the work force while in 2006 it absorbed only 44.7 percent, as shown in Table 3. The structureof the labour force explains to some extentd the high unemployment rate of university graduates.

Table 3: Development of labour force composition by sector (%)

Sector 2001 2004 2005 2006

Agriculture 68.8 43.4 44.1 44.7

Mining 4.4 7.5 7.5 7.3

Manufacturing 3.6 5.6 6.4 6.0

Utilities 2.4 5.1 5.0 4.8

Construction 10.7 20.4 19.0 19.4

Trade 3.0 6.3 6.6 6.4Transportation and Communication 2.1 3.5 3.4 3.2

Banking and Financial Services 1.9 3.4 3.7 3.8

Government and other services 3.1 4.8 4.3 4.4

Source:National Statistic Bureau, various years.

Profile of the working age in Indonesia

Data obtained from the Ministry of Manpower and Transmigration for 2008 showed that there wereabout one million HEI graduates aged 20-24 years, 1.7 million graduates aged 25-29 and 1.3 million

graduates aged 30-34 (Figure 2). The data also showed that about 7.5 million people in the labour forcehave a higher education (Figure 3), but the number of unemployed with a higher education degree wasalmost 1.2 million, 90 percent of whom were actively seeking employment (Figure 4).


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Figure 2: Profile of higher education graduates by age, 2008

20-24

606,959

329,656University

Numberofgraduates

Age group

College 727,876

956,177

455,077

817,236

25-29 30-340

500,000

1,000,000

1,500,000

2,000,000

Source: Ministry of Manpower and Transmigration

Figure 3:Profile of higher education graduate labour force, 2008

Numberofgraduateworkers

Level of education

Academy/College

1,577,634

1,602,839Female

Male 2,694,617

1,700,587

University0

2,000,000

4,000,000

6,000,000

Source:Ministry of Manpower and Transmigration

Figure 4: Profile of higher education graduates open unemployment, 20086

Numberofunemployed

graduates

Level of education

Academy/College

492,792

27,075

603,511

22,691

University0

200,000

400,000

600,000

800,000

Looking for employment

Others


6 Open unemployment refers to a situation where individuals are unable to nd jobs at reasonable rates, but are activelylooking for work.


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The 2008 economic turmoil obviously has had an impact on the job market in many countries. Althoughthe Indonesian government claimed that the economic recession might have a minimal impact onthe countrys economy, the number of people looking for employment, especially those with a tertiaryeducation, should be considered to provide a clearer understanding of the factors that affect theemployability of higher education graduates.

The Ministry of Manpower and Transmigration data also demonstrated that the number of people seekingjobs far exceeded job opportunities/vacancies available for graduates of higher education institutions(Table 4). It is safe to assume that people with knowledge, skills and attitudes preferred by employers willbe more likely to get a job, thus increasing the competition for the remaining job seekers.

Table 4: Job vacancies in 2008

Field of work Vacancy for male Vacancy for female Total vacancy

Agriculture, farming, sheries and forestry 40,221 25,075 65,296

Mining 1,229 434 1,663

Processing industry 20,829 22,038 42,867

Utilities company: electricity, gas, water 150 112 262Construction 3,924 45 3,969

Trading, retailer, restaurant, hotel 5,080 8,121 13,201

Transportation, warehousing,telecommunication

342 383 725

Finance, insurance 6,427 4,716 11,143

Public services 14,226 40,976 55,202

Total 92,428 101,900 194,328


Profile of the survey respondentsFigures 5, 6 and 7 summarize the proles of the respondents by sex, age and level of education.

Figure 5: Profile of respondents by sex

Numberofrespondents

Employed

172

119Female

Male 92

142

Looking for employment0

50100

150

200

250

300

Education programmes

Source:Survey data


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Figure 6: Profile of respondents by age

Number

ofrespondents

>38 29-38 19-28 >19

Age group

050

100150200250300350400450

Looking for employment

Employed

1 1 233 1

0 15 199 0

Source: Survey data

Figure 7: Profile of respondents by level of education

Numberofrespondents

0

1

D1

1

0

D2

25

47

D3

183

180

S1

10

5

S2

0

1

S3Looking for employment

Employed

Education programmes

0

50100

150

200250

300350400

Source: Study survey data7

More male graduates were employed compared to female graduates, and more female graduates werelooking for employment than their male counterparts (Figure 5). The majority of the respondents lookingfor employment were aged 19 to 28 years (Figure 6). Most of the respondents had an undergraduatedegree (S1) with an equal distribution between those who were employed and those seeking employment(Figure 7). The job fair appeared to attract more fresh graduates than those with a masters or higherdegree. This observation further reinforces the need to focus on the employability of undergraduatestudents.

Profile of employed graduates

Out of the 525 respondents, 291 were employed graduates. However, the question whether there areenough jobs to match the number of graduates looking for jobs remains a major concern, according tothe data shown in Figures 3 and 4.

The respondents were graduates from the following types of university:

Universitas Indonesia;

Universities around Jakarta area, i.e., Jabodetabek area (University Type A);

Universities in Java outside of Jakarta (University Type B);

Universities outside of Java (University Type C); and

Foreign universities (outside of Indonesia).

7 D = diploma; S = strata. D1 = one year diploma; D2 = two year diploma; D3 =a three year diploma; S1 = four year bachelorsor undergraduate degree; S2 = two year masters or postgraduate degree; S3 = three year doctoral or postgraduate degree.


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Figure 8 shows that 72 percent of the employed respondents were graduates of universities in theJakarta region (i.e., Universitas Indonesia and University Type A). This is not surprising since the surveywas conducted in Jakarta itself. However, more than 90 percent of the respondents graduated fromuniversities in Java, indicating that a substantial number came from further away to take advantage ofthe job exposition in their search for information and better job opportunities.

Figure 8: Survey respondents who are graduates from higher education institutions

1%4%

23%

29% 43%

Foreign university (1%)

University type C (4%)

University type B (23%)

University type A (29%)

Universitas Indonesia (43%)

Source: Survey data

Figure 9 shows that 28 percent of employed respondents found jobs even before graduation, 32 percentgot their rst job in less than three months and 23 percent within three to six months. Using the lead timeof 6 months or less as a measure to gauge whether graduates are readily employable, the 83 percentwho got their rst job within six months indicated a high level of employability. However, when tryingto extrapolate this nding to the whole of Indonesia, it would be prudent to note that most of therespondents were graduates from universities in Java only.

Figure 9: Lead time to first employment

7%10%

23%

32%

28%

>12 months (7%)

6-12 months (10%)

3-6 months (23%)


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Figure 10: Field of work

17%

6%

6%

38%

12%21%

IT industry (17%)

General industry (6%)

Education (6%)Others (38%)

Consulting (12%)

Public/service sector (21%)

Source:Survey data

Figure 11 shows that 51 percent of the respondents worked less than one year at their current place ofemployment and 33 percent up to two years, indicating a relatively new and transient workforce. Figure12 reveals that the majority of employed graduates thought their education background and trainingmatched their current employment. Yet Figure 13 points out a high level of job dissatisfaction: 77 percent

were dissatised with their current employment. Figure 14 highlights the mobility of young employeeswith 22 percent having moved once, 29 percent having moved at least twice and 6 percent more thanthree times prior to their current employment.

The 2008 tracer study of Universitas Indonesia graduates found that more than 66 percent of therespondents had other jobs prior to their current employment (Syaq and Fikawati, 2008). This ndingsuggests that job satisfaction might also be an issue for their cohorts. Likewise, the length of rstemployment varied between 6 months to 2 years for Filipino graduates (De Guzman and De Castro,2008). Perhaps this is a trend common among fresh graduates looking for options to improve their jobprospects. Considering the high level of job dissatisfaction among the newly recruited graduates in thecurrent Indonesian study (Figure 15), companies are likely to face high turnover rates if nothing is doneto address the issue of job satisfaction, which can be inuenced by many factors, including salary scales.While not denitive, Figure 16 shows that those earning higher salaries stayed longer in their jobs.

Figure 11: Length of work at current company

2%

17%

30%

51%

>5 years (2%)

3-5 years (17%)


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Figure 13: Job satisfaction

9%2%

21%

68%

Unsatistied (9%)

Very satised (2%)

Satised (21%)

Not yet satised (68%)

Source: Survey data

Figure 14: Change of employment

6%

29%

22%

43%

More than 3 times (6%)

2 or 3 times (29%)

Once (22%)

Never (43%)

Source:Survey data

Figure 15: Length of work and job satisfaction

Numberofrespondents

0

20

40

60

80

100

120

140

> 5 years3-5 years1-2 years


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Figure 16:Salary level and length of work

Numberofrespondents

5 yrs0

10

20

30

40

>Rp 10 million

Rp 5-10 million

4 5 11 3

1 5 9 1

Rp 2-5 million

38 yrs 29-38 yrs 19-28 yrs >19 yrs

Age of job seeker

0

50

100

150

200

250

Source:Survey data

As can be seen from Figure 18, the majority of respondents looking for jobs were from universities in Javawith more than 50 percent originating from universities within the Jakarta region. As a consequence,many preferred to work in the Jakarta area, although Figure 19 also indicates that some were looking foremployment outside of Java and abroad.

It should be noted, however, that those looking for jobs in the Jakarta region were not from Universitas

Indonesia or from Type A universities only (Figure 20). In fact, 22 percent were from universities outside ofJakarta. Moreover, about 5 percent in the Jakarta region were graduates of universities from other parts ofIndonesia, while Figure 21 indicates that the preferred location for work after Jakarta is abroad, especiallyfor graduates of Universitas Indonesia.


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Figure 18: Higher education institution of job seekers

Numberofrespondents

UniversitasIndonesia

UniversityType A

UniversityType B

UniversityType C

Foreignuniversity

Higher education institutions

0

20

40

60

80

100

81 85 52 15 2

Source:Survey data

Figure 19:Preferred work location

Numberofrespondents

AroundJakarta area

Java(not in Jakarta)

WestIndonesia

EastIndonesia

Abroad

Working location

0

50

100

150

200

250

210 11 18 9 21

Source:Survey data

Figure 20: Jakarta area as preferred work location

5%

22%

38%

35%

Universities outside of Java (5%)

Universities in Java outside of Jakarta (22%)

Universities around Jakarta area (38%)

Universitas Indonesia (35%)

Source:Survey data


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Figure 21:Preferred working location

Numberofrespondents

0

5

10

15

20

25

AbroadEast IndonesiaWest IndonesiaJava, outsideof Jakarta

Foreign universities

Universities outside of Java

Universities in Java outside of Jakarta

Universities around Jakarta area

Universitas Indonesia

Source: Survey data

This might indicate that graduates are condent that their skills honed in an Indonesian university canfull the requirements to work abroad. Further investigation is needed to see how jobs abroad absorbIndonesian graduates regardless of their eld of study or location of their university.

The respondents preferences for area of work (Figure 22) are spread evenly across the disciplines. Thisprovides an interesting contrast to the actual eld of employment presented in Figure 10. For example,while 24 percent cited general industry as their preferred choice, only 6 percent are working in thatarea. Similarly, 12 percent indicated a preference for education, only 6 percent are actually employed inthat sector (Table 5). Again, 17 percent had opted for others, but 38 percent ended up working in thisundened area.

This nding is rather signicant given that most of the graduates also said that they had applied for a job

related to their eld of study (Figure 23). This divergence underscores a stark reality that many graduatesare not working in their preferred areas even though they had applied for jobs in their area of specialty.This may be due to many factors, including a shortage of job opportunities and downturn in the sectors,but the graduates employability attributes should also be questioned.

It is also interesting to see that many graduates favoured employment in the private sector (Figure 24). Thisinclination towards the private sector is a common aspiration among the graduates from all universitiesin and outside of Jakarta (Figure 25). The question is, whether this preference is due to the graduatesperception that their skills are more suited for the private sector, or that the private sector pays highersalaries and better benets? Unfortunately, the survey results could not lead to any concrete conclusions.

Figure 22:Preferred field of area

16%

14%

17%

17%

24%

12%

IT industry (16%)

Education (12%)

Others (17%)

Service sector (17%)

General industry (24%)

Consultant service (14%)

Source: Survey data


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Figure 26 analyzes how a graduate secures employment. It shows that the majority of the graduatessurveyed had submitted at least ve job applications to land a job.

Figure 26:Attempts to obtain a job

0

10

20

30

40

50

60

70

80

Foreign

universites

Grads of

Univ Type C

Grads of

Univ Type B

Grads of

Univ Type A

Grads of UI

Never applied

>10 times

6-10 times

1-5 times

Source:Survey data

Employers on graduates employability

An employability performance indicator cannot be concluded simply from the employment rates ofHEI graduates. While some denitions of employability recognize that it is closely linked to the rapportbetween higher education and employment (Harvey, 1999), this relationship raises crucial questionsabout the purpose and structure of the higher education system. Employability is not about only trainingor providing additional skills to gain employment; it should also be about how the higher educationsystem through its many institutions develops critical, reective and empowered learners who will be

highly sought after and valued by employers. The employers perspective of the kind of graduates theywill hire is important to help HEIs decide the direction of their educational goals. This section discussesthe survey results gathered from 29 respondents representing various types of state-owned enterprisesduring a one-day workshop involving many government-owned companies.

When asked if the graduates skills are those required by their organizations, only a slight majority ofemployers replied positively (Figure 27). Furthermore, 43 percent indicated that they would like the highereducation curricula to meet the needs of industry. On-the-job training and improving the graduates softskills were also pointed out as areas that needed more attention (Figure 28).

Figure 27: Match between graduate skills and needs of business

48% 52%No (48%)

Yes (52%)

Source: Survey data


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Figure 28:Employers expectations

9%

28%

20%

43%

Improved curriculum accommodatingthe needs of industry (43%)

Others (9%)

On the job training is compulsory (28%)

Training in soft skills is neccessary (20%)

Source: Survey data

According to 83 percent of the employers surveyed, the most important criterion for hiring newemployees lies in the results of the placement test conducted by their companies. The test includes abattery of assessments on technical skills/knowledge related to the job, psychological test, medical testand scholastic test. Interestingly, only 52 percent of the employers considered the grade scores (GradePoint Average) to be an important factor when hiring a new employee, while 41 percent cited workexperience to be relevant.

The attributes most desired by the employers are listed below:

1. Communication skills

2. Teamwork skills

3. Integrity

4. Intellectual capacity

5. Self condence

6. Personality/individual character7. Planning skills

8. Writing skills

9. Computing skills

10. Analytical and problem solving skills

11. Other skills

The top four skills sought by employers are integrity, intellectual capacity, team work skills, analytical andproblem solving skills (in order of priority). When employers are asked to choose four skills which HEIsshould emphasize, they selected, in order of priority, analytical and problem solving skills, integrity, teamwork skills and personality.

These observations reaffirm the ndings from other studies (De Guzman and De Castro, 2008; Syaqand Fikawati, 2008; DGHE-MONE. 2009). Personal communication with representatives from relatedinstitutions echoed similar sentiments expressed by employers as reported by Syaq and Fikawati (2008)and Universitas Indonesia (2009):

Graduates need more exposure to industry. There should be links with appropriate industry.

Graduates need to develop skills to identify and analyze problems critically, which may be done through

problem-based exercises.

Soft skills for graduates are built through methods of delivery, not simply through a high level curriculum

structure.

Clearly, there is strong support for industries to play a bigger role in improving the employability of

graduates. While the mission of most HEIs is broader in scope than just supplying a steady stream ofskilled workforce, it is also expedient to align their educational programmes with the demands of theworkplace within or outside the formal curriculum structure.


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ConclusionsThe Indonesian economy and labour structure are shifting from agriculture-based towards the industryand service sector. However, the shift in economic structure has not been followed by the prole ofthe labour market. The low-skilled agriculture sector still dominates the labour market, therefore the

structure of the workforce is also still being dominated by lower education. As the economy and marketare modernizing, the mismatch of higher education in responding to the demand of the job marketbecomes noticeable, as is reected by high graduate unemployment rates. However, this study indicatedmore optimistic views of graduates seeking job and those already employed.

Since the survey was conducted in the Jakarta area, it was not surprising that most of respondents weregraduates from universities in the vicinity. The email and web surveys only managed to capture responsesfrom graduates who were already employed. The key ndings are summarised below:

Many of the graduates looking for employment felt that the jobs they applied for were related to their

eld of study regardless of the HEI they had attended.

Most of the graduates concurred that their academic training matched the requirements of their

current employment, indicating that the HEIs had prepared the students sufficiently to meet labour

market demands.

Jakarta was the preferred location for work, largely because most of the respondents were from the

capital. However, the graduates also indicated that they were looking for employment overseas.

The graduates had also submitted many job applications before they were able to nd employment.

Still, many found employment within six months of graduation.

Graduates looking for employment had expressed a preference for working in the private sector.

Regardless of the length of time in their current positions, the majority of employed graduates were

dissatised with their current jobs. For those who had expressed some degree of job satisfaction, the

salary level appeared to have been an inuential factor.

Many employers wanted the HEIs to improve their curricula to match the needs of the industry by

including on-the-job and soft skills training as part of students skill development. Employers prioritized integrity, intellectual capacity, team work skills, and analytical and problem solving

skills as the most desirable characteristics they were looking for from the graduates.

The ndings of this study provide a view of the employability of higher education graduates in Indonesia.It should be noted, however, that the sample does not represent the wide range of characteristics relevantto the context of graduate employability in the country. Given that Indonesia is an archipelago of over17,000 islands and 33 provinces, with big cities and smaller towns, the local conditions and requirementsare bound to be varied.

The majority of the respondents have an education equivalent to a bachelors degree, and therefore, thendings are based on their education and training. It is likely that graduates with a three-year diplomaeducation will show a different employability prole considering that their training is more gearedto meet the demands of the workplace. Further studies using larger sample sizes, covering a greatergeographic spread, and differentiating the various disciplines will be necessary to provide a more in-depth insight into the proles of graduates and their attributes of their employability.


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RecommendationsGraduate unemployment is dependent on many factors. Creating enough jobs to meet the increasingnumbers of highly educated young people is a priority of governments. HEIs, on the other hand, haveto ensure that they are producing the right kind of graduates who can meet the demands of employers.

Likewise, industries have to work hand in hand with the governments and HEIs to complement theirefforts in preparing the students to be a productive and skilled workforce when they graduate.

However, in times of economic hardships and intense competition, it is not easy for fresh graduates tond jobs that match their expectations even though they may think they are highly qualied. To addressthis issue, it may be necessary for graduates to be innovative and create jobs for themselves, rather thanwait for lucrative jobs to land on their laps. Such a paradigm shift has been initiated by the governmentby introducing an entrepreneurship skills programme and by providing seed capital for new graduatesto start up their own businesses.

HEIs should take special note that integrity, intellectual capacity, teamwork skills, and analytical andproblem solving skills are the four top priority skills sought after by the employers when hiring newemployees. They may have to re-design or adapt their curriculum to ensure that these qualities are

instilled in their students, and this should be done in collaboration with the industries.

Therefore, a closer relationship between universities and industries is highly recommended. While HEIsdevelop curricula that are adaptive to the needs of industries, likewise the employers should open itsdoors to students for internships and training. More industry involvement in the design of curricula,updating courses with the industries needs in mind, and dening the competence and qualicationsneeded by the industries will certainly benet all the stakeholders.

Graduates also have to take some responsibility in honing their employability. It is not enough to possessacademic knowledge and good grades. Job applicants who stand out are those who have demonstratedtheir soft skills, particularly those that are highly desired by employers.

Thus, it is clear that the issues of graduate employment and graduate employability do not depend only

on one party, but involves the government, HEIs, industries and students. Working together to developviable strategies and solutions is the only way forward.

As Indonesias economy is shifting toward the industry and service sectors, more highly trained andskilled work force will be needed to ll the demand. One of the major challenges of HEIs is how to keeptheir programme relevant to the demand and requirement of the emerging economy.

ReferencesBrown, P., Hesketh, A. and Williams, S. 2002. Employability in a knowledge-driven economy. Cardiff University,School of Social Sciences. Working Paper Series, 26. http://www.cf.ac.uk/socsi/research/publications/

workingpapers/paper-26.html.De Guzman, A.B. and De Castro, B.V. 2008. Employment and employability profile of a select group ofFilipino college graduates. KEDI Journal of Educational Policy, Vol. 5, No.1, pp. 63-81.

Dearing, R. 1997. Report of the National Committee of Inquiry into Higher Education, higher education in thelearning society. London. http://www.leeds.ac.uk/educol/ncihe/.

DGHE-MONE. 2009. Upaya mengurangi kesenjangan antara pendidikan tinggi dan dunia bisnis melaluikompetensi analitik. Academic paper. Jakarta, Directorate General of Higher Education-Minisitry ofNational Education, Indonesia.

Fearn, H. 2009. More things in heaven and earth, Horatio. Times Higher Education. http://www.timeshighereducation.co.uk/story.asp?sectioncode=26&storycode=404855.
http://www.cf.ac.uk/socsi/research/publicationshttp://www.leeds.ac.uk/educol/ncihehttp://www/http://www/http://www.leeds.ac.uk/educol/ncihehttp://www.cf.ac.uk/socsi/research/publications


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Harvey, L. 1999. Employability: developing the relationship between higher education and employment.Fifth Quality in Higher Education Conference, Warwick University, 28 October 1999. http://www.qualityresearchinternational.com/ese/relatedpapers.htm.

Harvey, L. 2003. On employability. Enhancing Student Employability Co-ordination Team (ESECT) and HigherEducation Academy.http://unesdoc.unesco.org/images/0015/001597/159779e.pdf.

McIntosh, S. 2008. Education and employment in OECD Countries. Paris, UNESCO International Institute forEducational Planning.

Sewell, P. 2009.A model of graduate employability and employability impact measure.University of CentralLancashire, ESCALATE Conference.

Smith, J., McKnight, A. and Naylor, R. 2000. Graduate employability: policy and performance in highereducation in the UK. The Economic Journal, Vol. 110, No. 464, pp. F382-F411.

Syafiq, A. and Fikawati, S. 2008. Tracer study University of Indonesia - final report. Jakarta, UniversitasIndonesia, Career Development Center.

Universitas Indonesia. 2003. Analysis on alumni tracer study. Jakarta, Universitas Indonesia, Faculty ofComputer Science.
http://www/http://unesdoc.unesco.org/images/0015/001597/159779e.pdfhttp://unesdoc.unesco.org/images/0015/001597/159779e.pdfhttp://www/


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Employability of graduates in MalaysiaMorshidi Sirat, Chan Lean Heng, Munir Shuib, Shukran Abdul Rahman, Seri Rahayu Ahmad Kamil and

Jasvir Kaur Nachatar Singh8

IntroductionUniversities are recognized as central actors in human capital development but there is growinginternational discourse on the role of higher education in social development (GUNI, 2008). In the contextof the present shift from knowledge to innovation economies, the role of universities in the developmentof socially conscious and active citizens is highly important.

Various forums and publications have discussed how higher education institutions (HEIs) can developcritical discourses which societies can use to continually reect on their evolution towards positive socialtransformation. These forums and publications also discuss how HEIs could strengthen their role asagents of transformation, facing both local and global challenges. This would entail efforts to reorient

their vision and mission towards the creation and distribution of socially relevant knowledge.

HEIs clearly have an important role in producing citizens who can contribute to social transformation.Strengthening the social responsibility of HEIs is essential for achieving harmonious global development.Still, HEIs are under attack from employers and the government for not producing graduates with theskills required by the industries. Thus, questions are being raised regarding the role of HEIs and whetherchanges are needed.

This chapter discusses the situation in Malaysia with regard to graduate unemployment, followed byan examination of the concepts of employability and graduateness and the role of universities. It alsopresents the perceptions of various stakeholders (government, employers, graduates and academics) onemployment, employability of graduates, and the need for changes in Malaysian higher education.

Changes in the Malaysian economy andeffects on graduate employmentMalaysia has an enormous number of graduates entering the local employment market every year, andthis trend shows no signs of slowing down. At the same time, the 1996 nancial crisis had negativeeffects in terms of rising unemployment. Even now, Malaysia continues to face the stark reality of risinggraduate unemployment in spite of signicant changes in the Malaysian economy since 1996.

It is in the context of this continuing supply of graduates against a backdrop of changing economic

fortunes and employment structures that issues concerning graduate unemployment and employabilityhave been raised. Policy makers, academics and industry have revisited the issue regarding the role ofthe university as a centre for the development of intellectual, creative and other higher level skills versusthe need to supply workers for the labour market (university as a factory). Facing criticism from both thegovernment and private industries, universities are being accused of producing unemployable graduates.

Numbers of graduates and employment patterns

The higher education reforms of 1996 resulted in substantial changes in Malaysias higher educationlandscape, especially in terms of a marked increase in student numbers and diversication of providersof higher education comprising public universities, private universities, private colleges and transnationalproviders (Morshidi, 2006).

8 Universiti Sains Malaysia, Malaysia.


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In 2007, the total number of graduates from all levels of studies at public HEIs was 85,448 and an equallyastounding number of 83,432 graduated from the private system. In 2008, the public system graduated59,844 students, while the private HEIs produced 26,590 graduates at the bachelors degree level (MoHE,2008). A large proportion of these graduates had difficulties in nding employment. As shown in Figure1, the percentage of graduates looking for jobs ranged between 30.7 percent in 2006 and 24.0 percentin 2008.

Figure 1: Graduate employment pattern, 2006-2009

2006 2007

Year

2008 20090

102030405060708090

100

Employed

Continuing studies

44.5

17.6

Upgrading skills

Waiting for a job posting

1.5

Looking for a job 30.7

5.7

48.1

18.9

1.2

26.7

5.1

52.8

15.2

1.2

24.0

6.7

45.1

18.4

2.2

26.7

7.6

Employment rates were higher among graduates with post-graduate degrees, as indicated in Table 1.Graduates of technical studies, information and communication technology (ICT) and education weremore likely to be employed compared to graduates of arts, social sciences and sciences, as indicated in

Table 2.

Table 1:Graduate employment status, by level of studies, 2006-2009

Level of studies

2006 2007 2008 2009

Employed Not yet

employed

Employed Not yet

employed

Employed Not yet

employed

Employed Not yet

employed

PhD 92.3 7.7 96.2 3.8 97.2 2.8 97.2 2.8

Master 89.6 10.4 90.2 9.8 92.7 7.3 91.8 8.2

Postgraduatediploma

95.8 4.2 86.1 13.8 99.6 0.5 97.6 2.4

First degree 63.6 36.4 70.4 29.7 75.4 24.7 70.9 29.2

Advanced diploma 68.0 32.0 72.9 27.2 74.2 25.8 66.5 33.5

Diploma 77.2 22.9 77.8 22.2 78.5 21.5 77.5 22.6

Certicate 67.3 32.7 65.4 34.5 61.5 38.5 59.3 40.6

Professional 71.7 28.4 88.9 11.1 94.4 5.6 91.4 8.6

Total percentageby year

69.3 30.7 73.3 26.7 75.9 24.1 73.3 26.7

Source:MoHE, various years.


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Table 2: Employment status of undergraduate graduates, by group of specialization,2006-2009

Specialization

2006 2007 2008 2009

Employed Not yet

employed

Employed Not yet

employed

Employed Not yet

employed

Employed Not yet

employed

Arts and SocialSciences

55.5 44.5 63.9 36.1 69.8 30.2 64.6 35.4

Sciences 52.4 47.6 65.6 34.4 69.1 30.9 66.9 33.2

Technical 65.2 34.9 70.6 29.4 75.8 24.2 69.8 30.2

Information &CommunicationTechnology

61.1 38.9 67.7 32.3 77.1 22.8 73.3 26.7

Education 97.0 3.0 96.4 3.6 96.9 3.2 94.9 5.1

Total percentageby year

63.6 36.4 70.3 29.7 75.3 24.7 70.9 29.1

Source: MoHE, various years.

Government measures towards increasing employability

Since the mid-2000s and with the establishment of the Ministry of Higher Education (MoHE) in 2004, theissue of rising unemployment levels among local graduates in certain disciplines has remained high onthe Malaysian governments agenda. There is a general perception, particularly among employers, thatunemployment of HEI graduates is due to their lack of generic skills and serious inadequacy in terms ofwork-related competencies.

In an effort to address this issue, the MoHE initiated a move to combine conventional discipline-relatedcourses and entrepreneurship courses. Not only is the curriculum being revised to include subjects

such as small business management, skills and competencies such as English language, team workand analytical skills are also being promoted, posing challenges to the structure, system and culture ofuniversities. The MoHE argues that with such a curriculum, graduates will be exposed to skills that wouldbe useful for them to start their own business, creating jobs for themselves and others in the process.

While many stakeholders, particularly employers, have different opinions about what needs to be doneby universities to improve the employability of local graduates, medium- to long-term solutions remainunclear. Despite strategies and programmes introduced by the government to foster employabilityamong graduates, unemployment among local graduates remains high.

Graduate employability: concepts,interpretations and issues

The concept of employability

The term employability has gained prominence of late because of the changing world of work.Employability is used interchangeably with other terms such as core skills, key skills, and commonskills. To Satereld and McLarty (1995), employabilityskills are the skills required to acquire and retaina job, including job-specic skills, academic skills and a range of attitudes and habits. Communication,problem solving and management skills are also important. According to Hillage and Pollard (1999, p.83), employability is (a) the ability to gain initial employment, (b) the ability to maintain employment and

make transitions between jobs and roles within the same organization to meet new job requirements,and (c) the ability to obtain new employment if required, to be independent in the labour market bybeing willing and able to manage employment transitions between and within organizations. It follows


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role of universities in nurturing the characteristics that help graduates to function across all aspects of lifeafter they graduate (the concept of graduateness). In other words, individuals must not only be gearedtowards serving the work sector, but must also develop the skills that allow them to benet their family,community and the nation (Dan, 1999).

Given the many challenges in life that graduates must deal with, it is very important that higher education

is concerned with promoting comprehensive excellence amongst university graduates. Of paramountimportance is the development of characteristics that epitomize the philosophy of a university and theaspirations of a nation, rather than simply the production of graduates who have the ability to secureemployment after completing their studies. Higher education must prepare graduates for all aspects ofthe outside world: employment, local issues and global problems. Thus, the higher education curriculummust prepare graduates to play adequate roles in discourse on issues such as nuclear energy, climatechange and globalization, and to not only t the needs of the industrial sector.

The task of producing graduates who are prepared for the many challenges of the real world cannotbe left only to HEIs but is the responsibility of the entire continuum of the education system, includingthe primary, secondary, and post-secondary education stages. All education institutions must togetherdischarge the role of developing individuals who contribute to their society.

Input from other relevant stakeholders is also essential in developing individuals with the characteristicsthat society requires. All stakeholders HEIs, employers, non-governmental organizations (NGOs), civil-society organizations (CSOs) and the government must act in unison with a view towards preparingindividuals for their social responsibilities and towards shaping society (Figure 2).

Figure 2:Stakeholders responsible for shaping society

Goverment

Industry

HEIs

Society

NGOs/CSOs

Thus, education should not be directed only towards meeting the needs and requirements of employers;as industry-ready is not synonymous with society-ready. Besides, discourse on employability shouldnot be conducted only as a reaction to the unemployment phenomenon, but rather as a part of effortsto develop society in the ideal form.


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Shared attributes:A graduate possesses additional general attributes, which are common to graduates

from a particular type of degree. These attributes may be rooted in the common teaching methods, or

ethos or educational objective of an institution.

Generic attributes:A graduate possesses generic attributes shared by all or most graduates.

Besides addressing the processes that promote the attainment of these attributes, it is important to

ensure the mechanisms to assess the attainment of the attributes are in place to ascertain that studentsmeet an expected threshold for each set of attributes before they become graduates. At the same time,it is important that HEIs provide an environment in which relevant competencies are continuouslyadapted to meet changing needs of the workplace and society (DfEE, 1997). Students must be ableto continuously learn and adapt to change, and graduates should be prepared for lifelong learning. Ifthis could be achieved, our societies would consequently have citizens that would be able to meet thechallenges of a constantly and rapidly changing world and could full their countries developmentaspirations (Dan, 1999).

Employability study in MalaysiaThe purpose of the study was to compile information about the opinions and perceptions of recentgraduates, employers (industry and NGOs), government and academics in Malaysia regardingunemployment and the employability characteristics of graduates.

In particular, the study aimed to assess the perceptions of respondents with regard to the followingresearch questions:

What are the causes of unemployment in Malaysia?

What are the characteristics of employability?

What are good quality graduates?

How should employees gain the required work skills?

Can social and interpersonal skills be taught? Should we re-structure curricula to improve employability?

What are the constraints in producing employable graduates?

Research methodology

For this study, a qualitative approach was adopted.9To gather the information, 11 focus group interviewswere conducted with graduates, employers, government officers and university staff in Penang and KualaLumpur between July and September 2009.10Each focus group comprised between eight and twelverespondents.11The interviews lasted between one and three hours.

The 11 groups were as follows:

1. Selected employers in Penang

2. IT employers in Petaling Jaya

3. Malaysian Employers Federation (MEF) in Kuala Lumpur

9 This approach is consistent with the view put forward by researchers such as Bryman (2004), Creswell (1994), Lee (1992),Merriam (1998), Silverman (2004; 2006) and Stake (1995) who state that the qualitative approach is a subjective andunstructured method of gaining the perspective, point of view and experiences of the research participants. Minichielloet al. (2008) further argue that the qualitative approach enables researchers to understand human behaviour, values andbeliefs from the informants perspective (Bryman, 2004 and Lee, 1992, p.9).

10 The focus group interview method has become a popular instrument for collecting qualitative data (Morgan, 1996; Parkerand Tritter, 2006) including higher education research (Collier and Driscoll, 1999). Morgan denes focus group methodologyas a research technique that collects data through group interaction (1996, p. 130) on a dened area of interest. This

technique is guided, monitored and recorded by the moderator (Gill et al., 2008, p. 293).11 The desirable size of a focus group is six to ten participants (Gill et al., 2008; Morgan, 1996) who have similar characteristics(Dreachslin, 1999) to ensure that the research respondents will be comfortable in speaking to each other ( Williams and Katz,2001).


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4. Small and medium industry/enterprise (SMI/SME), Perai, Penang

5. Non-government organizations in Penang

6. Industry Division, Ministry of Higher Education, Putrajaya

7. Academics and researchers in Universiti Sains Malaysia, Penang

8. Research officers in Universiti Sains Malaysia, Penang

9. A private university in Kuala Lumpur

10. A private college in Kuala Lumpur

11. Unemployed graduates in Penang

12. Graduate trainees in the Penang Skills Development Centre (PSDC)

Semi-structured interview questions and interview guides were used in the focus group interviews. 12The questions were asked by trained moderators who sought additional information with follow upquestions13 and the sessions were audio-taped for transcription purposes and to ensure an accuraterecord of what was said in the interviews.14The respondents were selected based on their willingness toshare their experiences.15

In addition, secondary sources, including research papers, newspapers and other documents were usedto collect relevant information.16In particular, data were collected from previous studies on employability,tracer studies of graduates, articles in newspapers and strategic plans of higher education in Malaysia.These documents were invaluable as naturally occurring texts and provided an overview and backgroundto the employability issues.17Figure 3 provides an overview of the method used for the study.

Figure 3: Overview of the research method

Research

Approach

Method of

Data Collection

Analyse/

Interpret Data

Qualitative

Approach

Focus Group

Interviews

Naturally Occuring

Documentation

Content

Analysis

12 This approach is supported by Morgan and Keueger (1998), Bryman (2004), Plowman (1999) and Tharenou et al. (2007) as theoverall objective of interviews is to understand interviewees feelings and thoughts about a topic without any interferencefrom the researcher. Different styles of asking questions may lead to more and additional information and clarication(Minichiello et al., 2008; Plowman, 1999) and give the research respondents an opportunity to tell their stories in their ownwords (Sommer and Sommer, 2001). Interestingly, the application of the interview guide generates rich data or an excellentsource of qualitative data which can provide useful information on a researched area (Breen, 2006; Williams and Katz, 2001).

13 Approach endorsed by Dreachslin, 1999; Parker and Tritter, 2006.14 Approach endorsed by Minichiello et al., 2008; Sommer and Sommer, 2001; Silverman, 2004.15 According to Minichiello et al. (2008) in a qualitative and exploratory study, it is necessary to speak only to those who can

provide rich knowledge (p. 169).16 In order to have high quality data, no one method of data collection is adequate to furnish sufficient information to

satisfactorily answer the research question (Buchanan, 1999). In addition, using additional documentation, counteractsthe biases of other methods and supplement sources of information (Tharenou et al., 2007, p. 125) and leads to makingsubstantial inferences from analysing documents (Yin, 2003).

17 Naturally occurring data are referred to as data produced entirely independently (Potter, 2004, p. 205) of the researchersintervention (Silverman, 2006) or non-research generated data (Silverman, 2005).


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Data analysis

The content analysis technique was used to interpret the information collected from the interviews anddocumentation.18The interview transcripts were read numerous times then themes in the material wereidentied and the researchers then grouped similar themes in order to create categories. The responseswere then interpreted in order to answer the research questions. This can be carried out by relating thecategories to each other in some way to tell a story in relation to the research question.19

Findings

Responses regarding unemployment

In general, the respondents considered that the unemployment situation in Malaysia was due to theunavailability of jobs. The MEF believed, however, that jobs for graduates were available and plentiful inthe expanding services sector.

According to the Federation of Malaysian Manufacturers/Small Medium Industries (FMM/SMI),

unemployment is a direct consequence of the contracting manufacturing sector. FMM/SMI respondentsbelieved that since multinational corporations began leaving Penang, jobs in the manufacturing sectorhad become scarce. Furthermore, FMM/SMI respondents were of the opinion that the surge in thenumber of graduates from universities was not helping the unemployment situation in Malaysia and thatchanges in occupational structure had worsened unemployment further, with rms employing fewerpeople.

Employers and the FMM/SMI were in agreement as to the unsuitability of graduates for the jobs available,and the MEF considered this a major issue for Malaysia.

Unemployed graduates responses as to why they were unemployed indicated that they felt they did notsatisfy job requirements in terms of their academic qualications, skills and competencies. In addition,graduates felt that their lack of experience and their families socio-economic background were factorsleading to unemployment. In some cases, graduates believed they were unemployed because they werereluctant to move to where jobs are available. For instance, a graduate respondent who lived in Penangresponded that he was not interested in moving to Kuala Lumpur even though there were many jobsavailable in Kuala Lumpur. He reasoned that the cost of living in Kuala Lumpur was very high comparedto the salary that he would have earned by working there.

What are the characteristics of employability

According to both NGOs and industry employers, employable graduates are those who are preparedto work, have the appropriate skills and competencies, and the ability to learn and re-learn. NGOs listedhumanitarian values (honesty, caring, patience) and socially-desirable attitudes (open, curious andcondent) as the key characteristics of employability. Employers, on the other hand, listed attitudessuch as preparedness, positivity, interest, dedication, team spirit, and readiness to face challenges andhardship, and work-related competencies such as the ability to apply theory in the working environment,the ability to speak English and communication skills as important characteristics. Employers also listedqualications as an important requirement for employability, but qualications were not considered tobe as important as attitude. For example, as one employer noted, we look rst at their qualications(technical), but their academic qualication will make up 20 percent and the rest will depend on theirattitude and adaptability. Thus, the responses indicate that a high grade point average will not guaranteeemployability.

18 Content analysis is dened as any technique for making inferences by objectively and systematically identifying speciedcharacteristics of messages (Holsti, 1969, p. 14; Creswell, 2003).19 The story is not just a description or simple summary of data but involves a central construct to be explained and other

variables that appear to explain or inuence it (Tharenou et al., 2007, p. 257; Coffey and Atk inson, 1996).


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Academics agreed with the employers regarding the importance of attitude. As one of the academicsnoted, students who have good marks but have a bad attitude such as being disobedient, and beingunable to share knowledge and work in a team ... will not succeed as their poor attitude will createproblems. Employers and academics also saw the need for graduates who are balanced in terms ofintelligence, emotional and spiritual quotients.

Trainees at the PSDC and other unemployed graduates believed having excellent communication skills,in particular English language skills, was important for employability.

What are good quality graduates?

The characteristics of good quality graduates, as perceived by the employers, include the following:

Good values (e.g. honest, condent yet humble, innovative and creative);

Positive attitudes (e.g. proactive, hardworking, high motivation and curiosity driven);

Work-related skills (e.g. communication, entrepreneurship and leadership skills); and

Preparedness to work (e.g. industry-ready skills and ability to perform well in a working environment).

How should employees gain the required work skills?

According to NGOs, training and exposure (work experience) are required to gain work skills. Academicsagreed that on-the-job training was important in preparing graduates for the workforce. In this context,they believed that alumni should assist their respective institutions to provide work-experienceopportunities for students. In addition, networking with industry was necessary for students to beexposed to real-world work situations. Nevertheless, academics responded that focusing purely on workskills was not sufficient. Graduates must also develop the values and knowledge required to contributeeffectively to society.

The employers agreed that work-experience was necessary but were not satised with the level ofnetworking that existed between industries and universities. Most of the employer respondents believed

that companies should be invited to universities to give career advice more frequently, and they believedthat companies should also play an active role in assessing the curriculum to ensure it matches job-market needs.

Graduates believed that lecturers need to be exposed to the demands and reality of the workplace sothat they will have up-to-date information for preparing their students. The respondents felt that somelecturers only taught theory, neglecting hands-on experience. Graduates felt that entrepreneurshipcourses should be offered by universities, with an emphasis on practical aspects. They felt that merelyexposing students to entrepreneurial theory would not be very useful.

Can social and interpersonal skills be taught?

According to employed graduates, social and interpersonal skills could not be taught by HEIs. Universitiescould come up with many activities, but as one employed graduate stated it is difficult for universities toteach these kinds of skills. Academics felt that the extra-curricular programmes and activities could helpstudents to improve their social and interpersonal skills, but agreed that these kinds of soft skills couldnot be easily taught at university level.

Should HEI curricula be re-structured to improve employability?

According to both employed and unemployed graduates, there is a need to realign the curriculum, aswell as the teaching and learning environment to the needs of the work-place. Graduates believed itwas important for universities to align courses with the world of work and employment opportunities.Respondents from Universiti Tenaga Nasional noted that employers should play a role in structuring

university courses to ensure graduates have the skills required for employability. Respondents fromthe International Islamic University Malaysia (IIUM) agreed. IIUM is believed to have a well-structuredprogramme to enhance graduates employability (see Appendix 1).


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In general, the employers believed that university curricula should be revamped, and employers shouldprovide input into the subjects being taught. Furthermore, more time should be given to practicalexperience. Employers also felt that lecturers should get real world industry work experience and conveythis experience to their students.

Most employers felt that graduates who had undergone internship programmes with well-known

companies were of great value to employers, particularly if the internship was longer than three months.However, some employers disagreed, saying that internships were difficult to manage and monitor. Forexample, one respondent commented, We do have internships but not often because it is difficult forus to monitor them. We are running on a tight schedule and have limited manpower to manage interns.

Most graduates thought internships were useful for securing a job. Some respondents suggestedinternships should be scheduled in the nal semester to give them the required experience to obtain ajob upon nishing their internship. Other graduates, such as PSDC trainees, believed that while internshipscould be useful, they did not gain much experience during their internships because employers did nottrust them.

According to the respondents from NGOs, graduates and lecturers should be exposed to civil societyactivities during their semester breaks. They should see life outside the ivory towers by familiarizing

themselves with NGO-type projects.

What are the constraints in producing employable graduates?

According to employers, the main constraint on producing employable graduates could be traced to acurriculum that did not t the needs of the workplace. Employers also noted an over-supply of graduatesto some extent, particularly IT graduates, because there were not enough large IT companies in Malaysiato absorb all the graduates.

Employers also believed that the graduates were rather uninformed about the need to establish andfollow a career path. Many graduates showed

employability in malaysia

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